Trustworthiness and Responsibility are the two pillars primarily affecting this case. Trustworthiness requires that one be honest; does not deceive, cheat or steal; and be reliable. Giles and Regas were telling lies and keeping secrets as they broke the rules of the firm and cheating on promises made Giles and Regas have a personal responsibility for their actions. It may be argued that they are not responsible for their feelings, but they are responsible for acting on their feelings. Being responsible means doing what you are supposed to do; using self-control; being self-discipline; thinking before you act; considering the consequences and being accountable for your choices. Neither Giles nor Regas resisted their attractions for each other.

If Giles were a person of integrity, he could have a “weak moment,” but then would have to explain why the affair continued. He might claim that once the affair started that the firm’s rules encouraged secrecy and deceit. However, that would not be acting responsible or accountable for his choices. An alternative approach is to admit his fault in the affair, in breaking the rules, and offer to quit.

Herb has to assess the situation and the effect on the firm. If he ignores the situation, the rules of the firm will never be followed. In assessing the situation, Morris will have to consider whether he can prove that Giles and Regas were actually dating. He will have to assess whether he will be able to trust Giles and Regas again, while realizing that he cannot coerce a breakup. Morris must decide whether to fire neither, fire both or fire Giles only. The decision to fire Giles only would be based on the fact as the partner, he had the most responsibility to follow and see that the rules are followed. The rationale for the rule is that a sexual relationship between different rank employees leaves the firm open to charges of sexual harassment. Due to the liability to the firm from sexual harassment, the decision to fire Ed Giles cannot be changed. Sue Regas could sue and win in court. Giles could cost the firm from lost revenues, but a lost in a sexual harassment lawsuit would cost the firm’s reputation for a long time.

Ethical and Professional Issues
Giles and Regas have put themselves in a position where their work product may suffer as a result of their relationship. It appears that this already has occurred since Mark Sax, the controller of CAA Industries, has expressed his concerns to Herb Morris, the managing partner of the local office of the firm that the delay in audit completion and high level of billings may be due to distractions resulting from the relationship. The reliability of Giles and Regas seems to be questioned by Sax. An important ethical concern is the conflict of interest that Giles may have if, for example, he determines that Regas is not adequately carrying out her responsibilities. Giles could have a difficult time dealing with this situation in the same way that be would handle a situation that involved a staff member with whom his relationship is solely professional. Moreover, the audit manager is in a sensitive position because he or she may know of the relationship and hesitate to treat Regas the same way other staff members are treated because Giles is the manager's superior. A conflict of interest tends to cloud one's judgment as to what is the right thing to do. It makes it more difficult for a supervisor to be impartial. Even the appearance of a conflict can harm the image of the professional. It has been said that the best way to handle a conflict of interest is not to become involved in one in the first place. This is why all three codes of conduct of the professional accounting associations preclude members from engaging in activities that can create such a conflict. The Principle of Objectivity in the AICPA Code requires that: A member should maintain objectivity and be free of conflicts of interest in discharging professional responsibilities. The ethical standard of Integrity in IMA Code states that:
Management accountants have a responsibility to avoid actual or apparent conflicts of interest and advise all appropriate parties of any potential conflict. Members of the IIA are expected to "refrain from entering into any activity which may be in conflict with the interest of their organization or which would prejudice their ability to carry out objectively their duties and responsibilities." The firm's policy on dating seems to be appropriate. It is designed to avoid compromising client relations and audit efficiency. The profession sets high standards of conduct to guide its members in relationships with clients, suppliers, customers and others who can influence the decision-making process. These same high standards should be aspired toby all CP As in dealing with members of their organization and other professionals. Giles and Regas are not acting in a professional manner. They seem to know this because in the last sentence of the first paragraph it states that they "have tried to be discreet about their relationship because they don't want to create any suspicions." If they truly felt comfortable with their relationship, then they would have nothing to hide. However, their actions violate firm policy and this is undoubtedly why they are being discreet.

It appears from the facts of the case that Giles is more responsible than Regas for the tension on the CAA Industries audit. To begin with, he never should have allowed Regasto serve as the senior on the audit since he is the supervising partner on the engagement. Perhaps he allowed her to work on the audit because to do otherwise might have aroused suspicions about a possible relationship between the two of them. Giles also seems to have created stress for Regas by his inappropriate comment: "There's no turning back for me." This type of comment can only add to the pressure Regas feels, given that her work is scrutinized by Giles. The result may be to negatively affect audit efficiency. Although Regas' involvement in the relationship should not be dismissed, she does seem to recognize the dangers and ultimately makes a decision to put aside their relationship in the interests of completing the audit. Rather than simply honoring her request not to date for two weeks, Giles conditions his agreement on a "farewell" dinner. This is not a very caring and considerate thing to do and it demonstrates selfishness on the part of Giles. In fact, the dinner is the event that brings matters out in the open because Mark Sax now suspects that their relationship may be affecting completion of the audit. The direct involvement of the client puts the firm in a very difficult position, one 1hat Herb Morris will have to deal with at the meeting with Giles.

Ethical Analysis
The decision to be made by Herb Morris can be analyzed using ethical reasoning. The stakeholders affected by Morris' decision include: Giles and Regas; the accounting firm; other staff members of the firm and its partners; CAA Industries and other clients that might be affected by the decision; and Mark Sax.

Utilitarian Theory: From a utilitarian perspective, Morris should weigh the consequences of alternative courses of action. The alternatives and an evaluation of the potential benefits and harms of each course of action follow. Permit Giles and Regas to complete the audit, but ask one of them to resign there after. It is not practical to remove Giles or Regas from an audit that should be completed in about two weeks. The decision already has been made to put aside their relationship until the CAA audit is completed. This seems to be the best option from both the accounting firm's position and that of the client. All stakeholders seem to benefit from allowing Giles and Regas to fulfill their audit responsibilities. The second part of this option is more troubling in that it is difficult to determine who should be asked to resign. It is an issue of fairness and due care. On the surface it may appear that Regas should be asked to resign because of Giles' position in the firm. However, this may not be in the best interests of the firm and other clients who may be